Vietnam’s Vingroup to launch its own smartphone brand

Vingroup, Vietnam’ biggest listed firm by market value and a conglomerate with businesses that range from real estate to retail to tourism to automotive, will launch its own smartphones brand “Vsmart” on December 14 as it diversifies further into a technology and industrial group.

Vingroup said on December 3 it will launch four models of smartphones under the brand name. The news came after Vingroup became the country’s first full-fledged domestic car maker two months ago after the launch of its own car brand VinFast.

In June this year, Vingroup established the VinSmart Co. to produce smartphones and other smart electronic devices with a registered capital of three trillion dong ($131.54 million).

The smartphones are being manufactured at the VinFast automobile and electric motorbike manufacturing complex in an industrial park in the northern port city of Hai Phong. The factory has a capacity of five million phones per year in the first stage.

Vingroup said in a statement that it now owns 51 per cent of Spanish technology firm BQ and will utilise the Spanish expertise for product development. In particular, most of the stages in the value chain from design, research and product development for the Vsmart phones have been undertaken by BQ.

“We hope that Vsmart phones, alongside VinFast cars, will contribute to the development of Vietnam’s industry and bring Vietnamese brands to the world,” said Nguyen Viet Quang, vice chairman and chief executive officer of Vingroup.

Vinmart is also working with Qualcomm and Google to “update the most advanced technology in the smartphone sector”, the statement said, without providing details.

Vingroup’s new electronics facility will also produce smart TVs and other smart home products and “intelligent electronics” in the future, it added.

The group’s ambitious diversification strategy comes at a time when Vietnam’s communist government is seeking to promote “national champions” in the country’s industry, and there are already comparisons with South Korea’s dominant family-run conglomerates known as chaebols.

Vingroup, Vietnam’ biggest listed firm by market value and a conglomerate with businesses that range from real estate to retail to tourism to automotive, will launch its own smartphones brand “Vsmart” on December 14 as it diversifies further into a technology and industrial group.

Vingroup said on December 3 it will launch four models of smartphones under the brand name. The news came after Vingroup became the country’s first full-fledged domestic car maker two months ago after the launch of its own car brand VinFast.

In June this year, Vingroup established the VinSmart Co. to produce smartphones and other smart electronic devices with a registered capital of three trillion dong ($131.54 million).

The smartphones are being manufactured at the VinFast automobile and electric motorbike manufacturing complex in an industrial park in the northern port city of Hai Phong. The factory has a capacity of five million phones per year in the first stage.

Vingroup said in a statement that it now owns 51 per cent of Spanish technology firm BQ and will utilise the Spanish expertise for product development. In particular, most of the stages in the value chain from design, research and product development for the Vsmart phones have been undertaken by BQ.

“We hope that Vsmart phones, alongside VinFast cars, will contribute to the development of Vietnam’s industry and bring Vietnamese brands to the world,” said Nguyen Viet Quang, vice chairman and chief executive officer of Vingroup.

Vinmart is also working with Qualcomm and Google to “update the most advanced technology in the smartphone sector”, the statement said, without providing details.

Vingroup’s new electronics facility will also produce smart TVs and other smart home products and “intelligent electronics” in the future, it added.

The group’s ambitious diversification strategy comes at a time when Vietnam’s communist government is seeking to promote “national champions” in the country’s industry, and there are already comparisons with South Korea’s dominant family-run conglomerates known as chaebols.